Consumer Confidence hits a new record low
February 24, 2009,
“The decline in the Present Situation Index, driven by worsening business conditions and a rapidly deteriorating job market, suggests that overall economic conditions have weakened even further this quarter,” said Lynn Franco, director of the board’s research center.
“Looking ahead, increasing concerns about business conditions, employment and earnings have further sapped confidence and driven expectations to their lowest level ever,” she said.
Consumers claiming business conditions are “bad” rose to 51.1% from 47.9%, while those saying business conditions are “good” bumped up to 6.8% from 6.5% last month. Consumers’ view of the labor market soured considerably in February, with those describing jobs as “hard to get” rising to 47.8% from 41.1% and those considering jobs “plentiful” falling to 4.4% from 7.1%.
Their view of the employment outlook also deteriorated. The percentage of consumers anticipating there will be fewer jobs in the months ahead jumped to 47.3% from 36.9%. Those expecting more jobs fell to 7.1% from 9.1%. The segment of consumers who expect an increase in their incomes dropped to 7.6% from 10.3%.